Daily fantasy sports winnings tax in Rhode Island
Rhode Island taxes daily fantasy winnings as ordinary income at graduated rates from 3.75% to 5.99%.
Updated · 2026 tax rules · How we calculate
You keep
$4,213
Cash at payout
$5,000
Total tax
$788
Due when you file
$788
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $188
- Still to pay when you file
- $788
- You keep
- $4,213
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
Rhode Island taxes gambling winnings as ordinary income.
Tax owed ($788) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $788 in federal and state tax: an effective rate of 15.8%.
An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.
The rules
- Rhode Island tax
- Rhode Island taxes daily fantasy winnings as ordinary income at graduated rates from 3.75% to 5.99%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- Rhode Island withholding
- No Rhode Island withholding requirement for daily fantasy winnings. Tax is due when you file.[3]Unverified
- Gambling losses
- No. Rhode Island does not allow federal itemized deductions, so you can't deduct gambling losses unless you gamble professionally.[4]
- Visitors
- Rhode Island taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Rhode Island.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $56 | $1,264 |
| $2,000 | Yes | $0 | $240 | $75 | $1,685 |
| $5,000 | Yes | $0 | $600 | $188 | $4,213 |
| $10,000 | Yes | $0 | $1,550 | $375 | $8,075 |
| $100,000 | Yes | $0 | $22,114 | $4,365 | $73,521 |
Questions
- How much is Rhode Island tax on daily fantasy winnings?
- Rhode Island taxes daily fantasy winnings as ordinary income at graduated rates from 3.75% to 5.99%.[1]
- Does Rhode Island withhold tax from daily fantasy winnings?
- Rhode Island has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]Unverified
- Do visitors pay Rhode Island tax on daily fantasy winnings?
- Rhode Island taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for Rhode Island
All of Rhode Island's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · checked September 22, 2026
- [3] 280-RICR-20-55-8, Lottery and Pari-Mutuel Winnings and Prizes · checked September 22, 2026
- [4] 2025 RI-1040 Instructions (RI Division of Taxation) · checked September 22, 2026
- [5] 2025 RI-1040NR Instructions (RI Division of Taxation) · checked September 22, 2026